NO, the housing market is not crashing. No, we are not going to see a return of the economic turmoil of the late 1980s and early 1990s.
Let’s just stop, breathe deeply and take a reality check for just one moment and reflect on the facts of what we are facing. In doing this I feel it is only fair to acknowledge who is directly responsible for the public’s perception of how they understand the housing market’s “depreciating position”.
The media, ill-informed speculative reporting, sensationalising and spinning a small degree of truth to benefit their greed for increased sales. Unprecedented months of doom and gloom reporting have fuelled public speculation, blatant scaremongering resulting in potential purchasers being frightened into hiding, afraid to buy in case they suffer a terrible financial loss. Cobblers!
FACT: Lending criteria has tightened up, the days of borrowing any sum of money up to 125% of the house value have gone. Good! Any lender offering to give you money that you could not really afford in the first place was never really helping you at all.
FACT: It is a buyer’s market. What does this actually mean? Answer: In financial terms not a lot. When we talk about a buyer’s market, what we mean is that the buyer is in a stronger negotiating position, so the likelihood is that you will have to accept a lower offer on the sale of your property. However, in accepting that offer you then become the buyer and you will negotiate a lower purchase price on the next property you buy. When the housing market is rising strongly we term it a seller’s market, the only difference is that the vendor selling their property is unlikely to take a low offer, but when they, in term, come to purchase their next house they will also have to pay the asking price.
What this all comes down to is simply the differential between what you get and what you pay which, in all honesty, will actually vary very little between either type of market if you do the maths.
This is not to say there are not bargains to be had. There is always someone, somewhere desperately keen to move. This is a great time to move. Don’t be scared to say yes to a lower offer, accept it subject to agreeing an acceptable offer on your next purchase, pass on the differential and you will be moving sooner than you thought.
FACT: A vastly expanding population due to people living longer, larger families, high rates of divorce leading one family unit to require two homes, and increased immigration makes the demand for property higher than ever. Link this with the shortage of new property being built and there can be only one outcome – that prices will rise again because demand is out-growing supply.
Don’t apply a nationalised doom and gloom theory because it is rubbish. In this country, markets are very regionalised. We are not a heavily populated city with soaring crime rates and thousands of similar houses all competing on price.
Herefordshire is a stunning county, with excellent schools, low crime rates, proper community spirit, history and prosperity. If I was living in any big city right now and looking at Hereford I know where I would want to be.
Property is selling in this county. Be flexible, price sensibly, then we will sell your home and find you the next one.
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